Court upholds power of FG to deduct $418m  for consultancy services on Paris Club refund  

A Federal High Court sitting in Abuja on Friday upheld the power of the federal government to deduct $418 million from the Federation Account to settle debts owed consultants engaged by states and local governments to secure the Paris Club refunds. The court, therefore, dismissed a suit by the Attorneys-General of the 36 states against the Federal Government.

The presiding Judge, Justice Inyang Ekwo, in a judgement on Friday, dismissed the suit, noting that the attorneys-general failed to show enough evidence to accord them the right to institute the action.

The judge maintained that there was no express evidence to show that the governors of the 36 states consented to the filing of the suit.

The judge had observed that “the office of the Attorney-General of a state was created under Section 195 of the 1999 Constitution, as amended and the AG of a state is appointed by a governor, which makes the AG an appointee who is under the control of a governor.”

Justice Ekwo stated that the argument of the plaintiffs that states were not party to the judgment debt did not hold water because the Nigerian Governors’ Forum and the Association of Local Governments were parties in the suit.

The judge also held that the plaintiffs admitted the existence of judgment debt, saying that the suit was a ploy to challenge the judgement debt.

The pressing judge said that the action of the plaintiff amounted to an abuse of court process and subsequently dismissed the suit for lacking in merit.

States had filed the suit to challenge the proposed deduction of $418 million from the Federation Account to settle debts owed consultants engaged by the states and local governments who provided services on the Paris Club refunds.